Magin: Upgrade CGN Power (01816) rating to "outperform the market" and raise target price to HK$3.7.

According to the Wise Finance APP, Morgan Stanley released a research report stating that it is expected that China General Nuclear Power Corporation (01816) will see a 10% year-on-year drop in second quarter net profit, mainly due to a decrease in electricity prices, but partially offset by a 4.6% year-on-year increase in electricity generation. The estimated impact of tax refunds for the period is about 200 million yuan, compared to 400 million yuan in the first quarter. Based on clearer project prospects and reduced electricity price risks, the bank has raised its target price by 45% to 3.7 Hong Kong dollars and upgraded its rating to "outperform the market".